Leasing of earthmoving equipment would attract VAT and not service tax

The CESTAT, Mumbai Bench held that assessee was engaged in renting of earthmoving equipments and terms and conditions stipulated in agreement entered into between assessee and lessor led to conclusion that transaction envisaged in agreement was one of transfer of right to use goods, assessee's activity of giving equipments on hire did not fall under category of 'supply of tangible goods for use'

Gimmco Ltd. v. Commissioner of Central Excise & Service Tax, Nagpur* [2017] 78 taxmann.com 30 (Mumbai - CESTAT)